Leverage

Using AI technology as our loan engine has the benefit of enabling users to leverage their positions in crypto assets. At Fenture, we have created a one-click user interface that enables you to do so instantly.

How the process works:

To open a leveraged position, users need to deposit the crypto assets they want to leverage. Our pools allow withdrawing more DIDs than it should be possible, as long as the collateral required is supplied to the position eventually, within the same transaction. To better explain this, let's use the example of a user that wants to leverage his yvUSDT position:

• Step 1 and 2 - The user selects the desired leverage, obtains the yvUSDT, and deposits them as collateral.

• Step 3 - Given the selected leverage, the protocol borrows the respective amount of DIDs.

• Step 4 - These DIDs are swapped into USDT (current price peg and slippage play an important role here).

• Step 5 - These USDT are deposited into a Yearn Vault to receive yvUSDT.

• Step 6 - These yvUSDT tokens are deposited back into Fenture to collateralize the user's position.

This process can be visualized using the following infographic:

You'll see that everything is done in a single transaction, thus only one gas fee will be needed. The entire transaction fails if any one of these stages is unsuccessful. Note that if the token is not an Interest Bearing Token, STEP 4 and STEP 5 are substituted by a simple market buy of the token the user is leveraging.